OctaFX | OctaFX Forex Broker
Open trading account

EUR rides high after German GDP - BBH

The euro was already trading firmly before German GDP surprised to the upside and helped lift the single currency through $1.17 for the first time since the ECB meeting in late October, explains the research team at BBH.  

Key Quotes

“The 0.8% quarterly expansion lifted the workday adjusted the year-over-year rate to 2.8% from a revised 2.3% in Q2, which is the fastest in six years.  Italian Q3 GDP growth was also firm at 0.5%, matching its best pace in seven years.  The 1.8% year-over-year pace is also the best since 2011.”  

“Against the dollar, the euro is extending the recovery that began last week from about $1.1555 (the lowest level in four months) and is above the 20-day moving average (~$1.1685).  We see risk toward $1.1745-$1.1760.  We view these euro upticks as corrective in nature and note that the US two-year premium over Germany continues to widen.  It stands near 2.43% now, up 40 bp in the past two months.”  

“The euro was also boosted by cross rate demand after the softer than expected UK and Swedish inflation.” 

GBP/USD off UK CPI-led swing lows, still weaker around 1.31 mark

   •  Latest UK CPI print prompts fresh selling.    •  Weaker USD lends some support.     •  Focus shifts to Wednesday’s UK labor market report. Th
Read more Previous

NZ: Circumspect about economy near term - ANZ

Analysts at ANZ suggest that their views on the New Zealand’s economic outlook have become more nuanced and while they retain a broadly constructive v
Read more Next
Start livechat